Securities Law Updates | New Proposed Legislation
December 4, 2009
New Securities Bill Seeks to Spur Municipal Bond Market
Federal Municipal Bond Marketing Support and Securitization Act of 2009
H.R. 1669 , 3/23/2009
Rep. Gerald E. Connolly, R-Va., has introduced legislation to spur the issuance of municipal bonds. Connolly’s legislation – otherwise known as the “Federal Municipal Bond Marketing Support and Securitization Act of 2009” – would provide direct assistance to municipal bond issuers by giving the Treasury Department, the Federal Reserve, and the Federal Financial Bank new authority to guarantee and purchase municipal securities.
Connolly said that the inability of state and local governments and other municipal bond issuers to float bonds could blunt the positive impacts of the federal economic recovery program, while a vibrant municipal bond market would pump more money…
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